Welcome back to Coffee Homes and Loans. This week we are talking about short term rentals (Like Airbnb and Vrbo) there is a lot of information on rules and regulations, and we are covering the most common questions and concerns new investors have.
Real estate investing is such a great way to start build passive income while you gain equity, the risks between doing long term rentals vs short term rental will vary depending on the type of property you own, the city where the property is located and whether you choose to hire a property management company.
To start, let’s identify the difference between a short-term rental and a long-term rental. A short-term rental is for any type of rental agreement that is less than 30 days, the person renting from you is called a guest. A long-term rental is a lease agreement longer than 30 days that can continue month to month, the person leasing from you is called a tenant. Guests and tenants must abide by the terms of their agreements.
The common violations for short-term rentals when the property owners could get fined are noise, parking, and trash services. You’ll notice that when you reserve a short-term rental there will be rules such as no parties or no outdoor gatherings after 10pm, this will reduce noise complaints. As the owner will need to outline how many vehicles are allowed to park in the driveway, garage, or street during the stay, you wouldn’t want vehicles taking up the entire street. And trash services, you need to make sure your guests are taking the trash during the specified trash days and hours and bringing back the bins into the home. Paying attention to these details will not only make happy neighbors but also prevent you from being fined.
How are short term rentals divided in Southern Nevada? There are rules and regulations based on the city location within Clark County Nevada. The cities are Henderson, Las Vegas and City of North Las Vegas.
Find your property in the Clark County Website to see where you are zoned and what you need to do to get started:
What about the lottery? There is a lottery that can allow you to convert your property to a short-term rental, this happens every year, usually at the beginning of the year. You would need to already own the property, have a business license and be within the city regulations to convert your property if you win.
What about fines? There are up to $10,000 fines per night if you are running an “illegal” short term rental. Our advice is to be careful and reach out to see which type of rental is most beneficial for you to avoid any possible issues.
We’d love to guide you through the process. Leave a comment below or schedule an appointment with us!